MSE automated trading starts June

The Malawi Stock Exchange (MSE) is expected to begin electronic trading in June with securities transferred and registered in the Central Securities Depository (CSD) to trade in the Automated Trading System (ATS).

In a statement last week, MSE said the development follows the establishment of ATS at the bourse as well as the introduction of electronically-held certificates at the Reserve Bank of Malawi CSD.

Reads the statement in part: “The CSD is commencing the dematerialisation process of the existing paper certificates, and therefore, requires that shareholders open investor accounts and dematerialise their securities [migrating from paper-based title to electronic securities] in preparation for the trading of electronic-based securities following implementation of the systems.

“Current shareholders are consequently required to contact a registered stock broker or custodian to dematerialise their stock holdings. Stock holders will be required to complete a stock holding declaration and consent to dematerialise form upon presentation of the physical certificates; a signed and stamped copy of the form will be provided to the holder.”

The dematerialisation process will run from April 30 to September 30 2018, according to the statement.

MSE has since appealed to the investing public to open securities accounts through a registered custodian or stock broker from April 30 2018 onwards.

In an earlier interview, RBM Governor Dalitso Kabambe said the automation of the stock market will enhance confidence for both local and international investors, encouraging potential investors to join the market by issuing shares and bonds.